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An Economic Analysis Of Stabilizing Schemes

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  • Subotnik, Abraham
  • Houck, James P.

Abstract

The main purpose of this paper is to analyze the welfare implications of stabilizing consumption and production and to compare it with the already-known welfare implications of stabilizing prices. Two sets of assumptions regarding supply behavior will be considered: (1) supply reacts instantaneously to a change in market prices, (2) producers react to changes in expected prices and expectations are "rational" within the context developed by J.F. Muth.

Suggested Citation

  • Subotnik, Abraham & Houck, James P., 1975. "An Economic Analysis Of Stabilizing Schemes," Staff Papers 13643, University of Minnesota, Department of Applied Economics.
    • Handle: RePEc:ags:umaesp:13643
    DOI: 10.22004/ag.econ.13643
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    References listed on IDEAS

    as
    1. Darrell Hueth & Andrew Schmitz, 1972. "International Trade in Intermediate and Final Goods: Some Welfare Implications of Destabilized Prices," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 86(3), pages 351-365.
    2. Benton F. Massell, 1969. "Price Stabilization and Welfare," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 83(2), pages 284-298.
    3. Frederick V. Waugh, 1944. "Does the Consumer Benefit from Price Instability?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 58(4), pages 602-614.
    4. Stephen J. Turnovsky, 1974. "Price Expectations and the Welfare Gains from Price Stabilization," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 56(4), pages 706-716.
    Full references (including those not matched with items on IDEAS)

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